IRI: Fewer Shoppers Buying Private Label Versus Last Year

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April 5, 2011

Fewer consumers are brand switching or selecting private label options to save money compared to this time last year, according to SymphonyIRI's inaugural MarketPulse survey.

Fewer shoppers are “switching brands to catch a sale and trading down to private label options, hinting at glimmers of optimism in a marketplace still marked by high levels of caution and frugality,” Symphony IRI said in a statement.

Consumers are shifting back to their favorite brands, though value remains essential, according to the survey:

• 36 percent of consumers are actively seeking out private label brands to save money today, versus 44 percent in 2010;
• 38 percent of consumers in 2011 are giving up their favorite brands to save money, versus 46 percent in 2010; and
• 64 percent in 2011 state price has become a more important consideration than convenience in brand purchases, a decline of six points versus 2010.

However, the number of consumers engaging in preplanning activities, such as coupon clipping and list making, remain virtually unchanged and are very much a part of consumers’ grocery shopping rituals.

"An economy in transition to recovery is as tricky to navigate for CPG, retail and healthcare leaders as an economy moving into recession," said John Freeland, president and chief executive officer, SymphonyIRI. "Some shoppers are retaining their frugal ways, others are spending more freely across the board and others still are spending more on some types of products, but remaining tight fisted about others. They are also re-evaluating where they purchase their products and updating their definition of value.”

A Bit Less Frugal
But consumers are definitely loosening the hold on their purse strings:

• 60 percent of shoppers are eating out less often, compared to 65 percent at this time last year;
• 52 percent try to make personal care products last longer, versus 63 percent in 2009;
• 49 percent visit hair salons less often, compared to 55 percent last year.

Still, grocery shopping is characterized by very deliberate and well thought out behaviors. Two out of three shoppers today are making shopping lists prior to visiting the store, consistent with trends in 2010.

Also unchanged during the past year, 56 percent are reading store fliers either before shopping or at the store.

SBD Views: Not all consumer research on private label is peaches and cream. This new research from SymphonyIRI reinforces that store brands product quality will be a critical determining factor in how much of their recent share gains are maintained as the economy recovers. -- John Failla for Store Brands Decisions

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